KUALA LUMPUR, July 8 — The Malaysia Competition Commission (MyCC) has imposed a total fine of RM2.98 million on three contractor companies found to be involved in a bid-rigging cartel.

MyCC chief executive officer Datuk Iskandar Ismail said the companies involved are Abadi Malaysia Sdn Bhd, Kota Landskap Sdn Bhd, and Usia Maintenance Sdn Bhd, according to a report published in Berita Harian today.

He said the cartel’s activities involved six tenders issued by Perbadanan Putrajaya (PPj) between 2018 and 2021, worth over RM44 million, in violation of Section 4 of the Competition Act 2010 (Act 712).

"MyCC began a preliminary assessment following complaints of bid-rigging related to building and facility maintenance, landscaping, and civil engineering projects in Putrajaya.

"From the assessment, we identified nine enterprises suspected of being involved in the cartel,” he said at a press conference at MyCC’s office here today.

Iskandar said a full investigation was launched, including raids on the premises of the companies involved, the collection of statements from 24 individuals, requests for information, and analysis of related evidence.

"Following the investigation, MyCC issued its proposed decision on 10 September 2024, and received representations from the companies on 11 November 2024 and 13 March this year.

"After thoroughly reviewing the representations, MyCC found that the companies had violated Act 712 and issued its infringement decision yesterday,” he said.

According to Iskandar, Abadi Malaysia coordinated the cartel’s bid-rigging operations.

"Our investigation found that the companies coordinated their tender submissions through information sharing via WhatsApp, email, and several meetings.

"Tender documents for all three companies were prepared at the same location under the coordination of Abadi Malaysia, facilitated by one of the company’s directors.

"This modus operandi was used in all six tenders involved,” he said.

During the raids, MyCC also found documents belonging to all three companies at Kota Landskap’s premises, suggesting centralised coordination of the tender documentation.

"As a result of the collusion, Usia Maintenance and Abadi Malaysia each won two tenders.

"However, they were also found guilty of bid-rigging in the remaining four tenders, based on evidence of cartel conduct in those tenders.

"For Kota Landskap, MyCC found that the company engaged in cartel behaviour throughout the preparation and submission process for all six tenders,” he said.

He added that the companies’ directors were either family members or had close personal ties.

"No officers from PPj were involved in the scheme. In fact, the local authority filed the complaint and cooperated fully with the investigation.

"To date, we still have 14 ongoing cases involving more than 500 companies, with a total tender value of RM2.3 billion,” he said.

Iskandar urged all market players to learn from this case and renew their commitment to ethical business practices.

"Businesses must compete based on merit, not secret agreements. Public and private organisations must remain vigilant against signs of anti-competitive behaviour in their procurement processes,” he said.